The GTAS indicators and trading signals

Introduction

The "Global Trend Analysis
System" (GTAS) method was designed by proprietary trader and
ex-fund manager Bernard Prats-Desclaux. In his book, Stratégies
de marchés (Market strategies), published in 2016 by
Eyrolles, this trader explains the GTAS method in great
detail.

His proprietary indicators used
in the GTAS method are: BSI, S-Trend, FibTdi and Power. These
four indicators can be used in all time frames and on all
instruments. Although the indicators can be used individually
they are, in the GTAS method, used in conjunction.

The GTAS BSI indicator

The BSI indicator has been
designed to indicate the direction of the trend and to provide
good timing for buy (sell) signals. A judicious combination of
momentum indicators is the basis of the BSI indicator.

Visually, the BSI indicator is displayed as a histogram below
the main chart. The histogram is interpreted as follows:

A green +100 bar indicates a positive (bullish) trend.

A red -100 bar indicates a negative (bearish) trend.

The other values (+50, 0, -50) are not relevant.

How to use the GTAS BSI indicator?

The timing to buy a long position is right when the BSI
changes to +100 (green) and if, for example, the trend on a
higher time frame is positive or if a trading strategy
suggests a buy.

The timing to sell a short sell position is right when the
BSI changes to -100 (red) and if, for example, the trend on
a higher time frame is negative or if a trading strategy
suggests a short sell.

Do not open long positions when
the BSI is not at +100. As long as the BSI remains at +100 a
long position can be maintained.

Do not open short sell positions
when the BSI is not at -100. As long as the BSI remains at
-100 a short sell position can be maintained.

The GTAS FibTdi indicator

The FibTdi is a trend indicator
which combines market volatility and potential retracement
levels. Visually, the indicator is represented as a green or
red zone in the main chart.

How to use the GTAS FibTdi indicator?

When the zone is green, the trend
is positive (bullish). When the zone is red, the trend is
negative (bearish).

Trading:

Once a position has been opened
and the trend is clear, the FibTdi shows potential retracement
zones.

When the market price moves out
of the zone, it is may be time to take profit or close the
position.

On the other hand, when the
market price moves back into the zone, it may be a good
opportunity to increase the position if other GTAS indicators
(BSI and S-Trend) show it makes sense to do so.

In the workspacebar the user
could change the following parameters:

Periods – the number of candles used to calculate the
volatility.

Ema1 – fast edge of the zone.

Ema2 – slow edge of the zone.

Ret1 – first retracement level to calculate the zone.

Ret2 – second retracement level to calculate the zone.

The GTAS S-Trend indicator

The GTAS S-Trend indicator is a
momentum indicator which supports the trader in determining
the trends based on a combination of MACD, RSI and moving
averages.

This oscillator evolves between
-65 and +65 with a neutral band of -25 and +25.

An S-Trend value of > +25 indicates a positive
(bullish) trend.

An S-Trend value of < -25 indicates a negative
(bearish) trend.

An S-Trend value between +25 and -25 indicates a sideways
zone. A positive value in this zone indicates a positive
bias. A negative value indicates a negative bias.

How to use the GTAS S-Trend indicator?

Trend indicator

The indicator is even more
interesting when used in multiple time frames.

When the S-Trend is > +25 and
no reversal pattern occurs, the trader simply limits himself
to buying long positions.

When the S-Trend is < -25 and
no reversal pattern occurs, the trader simply limits himself
to opening short sell positions or, in case he is long,
closing long positions.

It is possible to do quick
trades in the -25 / +25 zone if one pays attention to the best
practices of trading in a sideways zone.

Timing indicator

In the sideways zones, a move of
the S-Trend indicator above +25 or below -25 without a
corresponding price move is a sign of strength which can be
used as an announcement of a price break.

The indicator is subsequently
used as a timing signal, one of the very rare situations in
which it is not necessary to wait for a price move as
confirmation, because the return/risk is very interesting.

In the workspacebar the user
could change the following parameter:

Period – the number of candles used to smoothen the trend.

The GTAS Power indicator

The GTAS Power indicator is a
momentum indicator which determines the main, underlying
trends using a combination of moving averages.

Visually, the indicator is shown
as an green/red histogram around the zero-line.

How to use the GTAS Power indicator?

When the Power indicator is green, the main underlying
trend is positive (bullish).

When the Power indicator is red, the main underlying trend
is negative (bearish).

This indicator can be used as a
filter for the other GTAS indicators.

The GTAS indicator package is
free and available in NanoTrader Free and Full.

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